Until there’s a way to create symbiotic relationships between banks and the marijuana industry, the ability to legitimize cannabis will remain a struggle. These days, marijuana businesses are transporting cash on their own or have to spend large amounts of money to hire security companies to do it for them. So while the banking situation remains one of the biggest hurdles for marijuana legalization, one company is hoping to bypass federal law and make it easier for businesses to not only have a bank account, but also a line of credit. They also want to make transactions between buyers and sellers cashless as well.
According to an article in MarketWatch, prepaid debit card processor Global Payout Inc. “is planning to work with state chartered banks in jurisdictions where marijuana is legal, allowing them to issue cards and hold funds. The card will work like any other prepaid, close-looped credit card—think, JC Penney’s or Macy’s store cards.”
Global Payout Chief Executive Jim Hancock said, “Just like a debit card or credit card system in a restaurant; it works exactly the same. Cash—the drug industry revolves around that—we want to get away from that and try to get back to society. Now, people either take [the money] home and put it in a closet, use duffel bags, or even take it off shore in some cases.”
In creating the company, Hancock hopes his new system will make it easier for state governments to keep a close eye on the industry, “especially when determining whether dispensaries are paying their full tax bill.”
Hancock has said that the system is in place and ready to be enacted. In fact, it was developed over five years ago. But before things get up and running, there will be an “integration and adoption period that could take up to six months before it is fully operational.”